The Government has obliged all upstream oil and gas contractors to prepare a work plan and allocate funds for abandonment and site restoration (ASR) activities of their blocks in a policy that will see a number of investors amend their contracts. The obligation is stipulated in the recently issued Ministry of Energy and Mineral Resources (MEMR) Regulation 15 of 2018.

PLN power generation plans

The MEMR announced that it had approved and launched PLN's new electricity procurement business plan (RUPTL) for the 2018-2027 period provided in MEMR Decree 1567 K/21/MEM/2018.

New regulation set for PLN purchased coal

Government Regulation 8 of 2018 was issued recently permitting PLN to buy coal from domestic miners at a discounted price. The regulation serves as the basis for MEMR Decree 1395 K/30/MEM/2018 which sets the USD 70 per metric ton fixed price for coal supplied to PLN.

Foreign investors to bid for large mining areas

Recently issued MEMR Regulation 11 of 2018 introduces detailed provisions regarding the auction of expired mining areas previously operated by various mining permit holders. Foreign investors may bid only for mining concessions with a total area exceeding 500 hectares, with the smaller prioritised for regional administration-owned enterprises.

Industrial salt import recommendation now issued by the Ministry of Industry

President Jokowi signed Government Regulation 9 of 2018 which effectively transfers the authority to issue industrial salt import recommendations from the Ministry of Maritime Affairs and Fisheries to the Ministry of Industry. Within the first few days of its passage, the Ministry of Trade (with Ministry of Industry recommendation) issued 25 industrial salt import permits.

Technology

Government blocks Tumblr

The Ministry of Communication and Informatics (MOCI) blocked Tumblr on 6 March 2018 due to circulation of prohibited content under 2016 Electronic Information and Transactions Law.

MOCI clarifies its regulatory scope over ride-hailing activities

The Ministry of Transport (MOT) and MOCI have both been tasked with regulating and monitoring ride-hailing activities. The MOT, through MOT Regulation 108 of 2017, only regulates drivers and cooperatives partnered with ride-hailing applications. Reportedly, MOT is in the process of issuing a regulation qualifying ride hailing activities as transportation companies and making these activities subject to MOT supervision.

International Trade

New trade restrictions threaten palm oil industry

Norway is the latest country to impose restrictions on Indonesian palm oil products, following on the heels of similar measures from the EU, India and the USA.